Australia`s OneSteel signs new iron ore customer

Australia`s OneSteel signs new iron ore customer

Steel producer OneSteel Ltd has proven its Project Magnet isn’t just a one-deal pony, signing a second long-term iron ore customer.

Chinese steel producer Shanxi Haixin Iron & Steel Group Co Ltd (Haixin) will take up more than six million tonnes of iron ore over the life of the 10-year contract.

“The signing of this long-term export iron ore contract consolidates OneSteel’s position as a significant Australian exporter of iron ore,” chief executive Geoff Plummer said.

Project Magnet is the $A385 million ($US317.03 million) plan to convert OneSteel’s Whyalla Steelworks to produce steel from magnetite rather than hematite iron ore, freeing around 40 million tonnes of hematite lump and fine ore for sale over 10 years. The Haixin deal starts on July 1.

Source: Business in Asia Today – May 21, 2007

published by Asia Pulse

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